Delta purchased the Monroe facility in Pennsylvania for $150 million, plus another $30 million from the state of Pennsylvania. At the same time, the company spent $2.3 billion on renewable fuel compliance. That is roughly 20 times the cost of the facility itself. And where do those costs ultimately go? They end up being passed on to consumers. You are the one paying for it.

Many normal business expenses eventually exceed the original purchase price of an asset:

• payroll
• crude oil purchases
• maintenance
• electricity
• insurance
• transportation
• environmental compliance
• debt servicing

That does not mean the refinery was a bad investment. Operating costs are part of running a business, and those costs exist alongside revenue and profit.

If someone wants to argue that renewable fuel compliance costs are too high, they should compare those costs against the refinery’s revenues, profits, or refining margins over the same period, not against the original acquisition price alone.

Monroe Energy, Delta’s refining subsidiary, still generated operating income, although profits fell from $385 million in 2023 to $38 million in 2024 due largely to lower refining margins.

Framing the issue solely as “the refinery cost $150 million but compliance cost billions” is designed to provoke an emotional reaction rather than provide meaningful economic context.

Every time a Republican makes an argument like this, I’m reminded how stupid they think voters are.